Chapter 7 Vocab

2. the removal of government controls over a market
4. a contract that gives a single firm the right to sell its good within an exclusive market
8. When two or more companies join to form a single firm
11. a series of competitive price cut that lowers the market price below cost of production
12. a product such as petroleum or milk that is considered the same no matter who produces or sells it
13. a way to attract customers through style, service, or location but not a lower price
15. an illegal agreement among firms to divide the market, set rices, or limit production
17. laws that encourage competition in the market place
18. a market that runs most efficiently when one large firm supplies all of the output cost

1. a market structure in which many companies sell products that are similar but not identical
3. the expenses a new business must pay before it can begin to produce and sell goods
5. a formal organization of products that agree to coordinate pries and production
6. selling a product below cost for a short period of time to drive competitors out of the market
7. factors that cause a producers average cost per unit fall as output rises
9. any factor that makes it difficult for a new firm to enter a market
10. the division of consumers into group based on how much they will pay for a good
14. a market structure in which a few large firms dominate a market
16. a license that gives the inventor of a new product the exclusive right to sell it for a specific period of time